AI Won’t Boost Human Productivity Yet, U.S. Federal Reserve Says

The U.S. Federal Reserve has expressed skepticism about the immediate impact of AI on human productivity. In a recent report, the central bank stated that the timeline for an AI-driven productivity boom will be "inherently slow" and "fraught with risk." The report highlights the challenges in effectively integrating AI into existing workflows and the need for significant investments in infrastructure, training, and reskilling of the workforce. The Federal Reserve cautioned that the transition to an AI-powered economy will be gradual and face numerous obstacles, contrary to the expectations of a rapid technological revolution. The central bank's assessment reflects the complexity of harnessing the full potential of AI and the need for a measured and cautious approach to its adoption. The report emphasizes the importance of carefully managing the risks and challenges associated with the integration of AI technology to ensure a smooth and sustainable transition for businesses and workers.